Federation president Gil McGowan stood on the steps of the legislature yesterday to say that a planned $2 billion in budget cuts will destroy thousands of jobs.

"They're not tipping their hand, they're not being forthright with Albertans," McGowan told a handful of reporters. "We've used their own forecasting to make our own estimates and frankly those estimates are frightening.

"With cuts of the magnitude they've been discussing - of between $2 billion and $3 billion - those cuts will result in the loss of between 33,000 jobs and 60,000 jobs."

But a Finance Ministry spokesman said the labour group is wrong and its projections are not based on accurate information.

"They seem to be aimed at creating fear," said Bart Johnson.

Alberta's $2 billion fiscal correction is based on projections that next year's budget will grow by $2 billion, he said.

So the Tory government's goal will be achieved, Johnson said, if it can keep the total budget at the same level of spending as last year - $36.4 billion.

The spring sitting of the legislature opens with a throne speech on Feb. 4.